Lots of whipsaw action today in the currency markets. Today in the European session I'll looking at "risk on" and "commodity" currencies. You can see here on the 3 min chart that I started Asia ok, but I'm back near breakeven. Hope is NOT a strategy, but praying never hurts.

With no major market-moving US news reports today, and the major European equity markets looking uninspired at the midpoint of the London trading day, the EUR/USD currency pair likely faces a battle in the 1.2850 zone during the New York morning session.

The 1.3420 zone has influenced EUR/USD price action on multiple occasions over the past few weeks, and did so again today. The euro was softer against the US dollar during New York morning trading after a London session rally ended just north of the 1.3420 level.

Yesterday, the EUR/USD currency pair rallied sharply to the 1.35 handle following the announcement of the Federal Reserve's plan to cut the rate in charges the ECB for short-term dollar loans. Today, the euro made another attempt to breach 1.35, but failed to hold it.

Up during the London morning, down during the London afternoon. That pattern has defined price action on the EUR/USD currency pair on several days over the past several weeks, and it applied today as well. The euro fell more than 80 pips from its high of the day, much of that move occuring during the first hour of the New York…

The US dollar recouped its London session losses against the euro at the end of the European trading day. During the New York lunch hour, the EUR/USD currency pair dropped 90 pips, much of that after the release of the FOMC's latest policy decision and statement.